A home inspection/systems check is available to any purchaser on (FHA) insured and uninsured
sales. The intent of the inspection is to identify major defects only. A professional licensed inspector must
perform the inspection.
The purchaser has 15 days from the date of HUD's acceptance of a sales contract to
have the inspection completed. Failure to comply with this time frame may forfeit
purchaser's right to an inspection with utilities on.
Up to $200 of the cost may be financed when a FHA loan is involved; or included as a
closing cost on Line 5 of the Sales Contract.
The agent must submit a "Home Inspection Request" to the nearest PROPERTY
MANAGEMENT OFFICE. A copy of the accepted contract must be attached.
The utilities must be activated by the purchaser or agent, in the purchaser's name. The
utilities may not remain on for more than two days.
Purchaser is responsible for all expenses resulting from the inspection, including repair of
damage to the property. The agent must be present during the inspection.
The agent is responsible for ensuring that the property is returned to the same condition
as before the inspection.
The purchaser may not make any repair to the property prior to closing.
If the inspection discloses a major defect, the following will apply:
A. Insured Sales: The purchaser may either close "as is" or be released from the
contract with earnest money refunded, provided HUD concurs with the inspection
report, receives the written request within 15 days of contract acceptance, and HUD
elects not to make repairs. A copy of the inspection report must be attached to the
request for sales contract cancellation.
B. Uninsured Sales: No repairs will be authorized. The inspection will not be a basis for
canceling the sale.
If utilities cannot be turned on due to code violations, known defects, or utility company policy,
the Home Inspection Request will be denied.
The following applies to properties NOT owned by HUD:
You will be able to have a home inspection prior to closing. If you have an option period in your contract, you should have the inspection
completed within that period. Otherwise, you may write into your contract that closing will be contingent upon the results of a home inspection.
